The Trump administration will maintain its tariffs on semiconductors made in China at the current level until June 2027, after which the semiconductor tariffs are expected to increase at a rate yet to be determined.
In a Federal Register filing submitted on Tuesday, the U.S. Trade Representative announced that it would apply 0% additional tariffs on Chinese semiconductor imports. The administration will then determine a new tariff rate at least 30 days in advance of June 23, 2027.
The current tariff rates on China remain unchanged, including the 50% tariff on Chinese semiconductors issued under the Biden administration last year.
The move comes amid an ongoing investigation under Section 301 of the Trade Act of 1974. Against the backdrop of the finalized trade deal between the two nations, the United States accuses China of maintaining unfair trade practices in the semiconductor industry.
The USTR determined that China’s dominance in the semiconductor market is “unreasonable and burdens or restricts U.S. commerce,” thereby necessitating action.
“For decades, China has targeted the semiconductor industry for dominance and has employed increasingly aggressive and sweeping non-market policies and practices in pursuing dominance of the sector,” the U.S. trade agency says in the filing. “China’s pursuit of its dominance goals has severely disadvantaged U.S. companies, workers, and the U.S. economy generally through lessened competition and commercial opportunities and through the creation of economic security risks from dependencies and vulnerabilities.”
By the end of the 18 months, starting Tuesday, the to-be-determined tariff rate will be added onto the existing 50% rate.
“These new Section 301 tariffs would be additional to the existing 50% Section 301 tariff on semiconductors from China imposed pursuant to the Section 301 investigation related to forced technology transfer,” the USTR states.
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“The U.S. Trade Representative will continue to monitor the efficacy of this action, the progress made toward resolution of this matter, and the need for any additional action,” it adds.
In late October, President Donald Trump and Chinese President Xi Jinping reached an agreement that ended the trade war between their respective countries. The agreement’s fact sheet specified that China would end its investigations into U.S. semiconductor companies. In return, the U.S. would “extend the expiration of certain Section 301 tariff exclusions” to Nov. 10, 2026.
